Panama City adopts $5.7 million annual fire service assessment after public hearing

The Panama City Commission on Sept. 9 adopted the city’s final fire service assessment resolution for fiscal year 2026, setting assessed fire-service revenues at about $5.7 million and approving Resolution 20250909.1 after a public hearing and a unanimous 5–0 vote.

The assessment follows Ordinance 32-25 adopted June 25, 2024, which requires annual adoption of a final assessment resolution for fire services and a public hearing on the assessment roll. The staff report said notices were mailed to property owners on or before Aug. 19, 2025 and that 2,213 properties required notice this year because of annexations or changes in property use.

At the podium, several residents urged the commission to reconsider the assessment or to reallocate other city revenues before imposing the assessment on all property owners. Derek Thomas, a resident of West 10th Street, said downtown recovery spending concentrated on specific areas after Hurricane Michael and asked why other neighborhoods were not prioritized: “How are you gonna do that? Are you talking about the HRP program?... If you don't make a plan to get the stuff you need done finished, I don't see how you're ever going to get rid of this fire assessment tax.”

John LaPlante, who identified himself as representing the Kelly Apartments, said the assessment would be an added burden on his property owners and estimated per-unit impacts if assessments continue.

City staff explained the assessment structure and exemptions. The staff presentation said government properties, agricultural lands and properties receiving senior or veteran exemptions were not assessed; institutional properties received a 50% exemption. Staff also noted some multi-family and nonprofit properties pay little or no ad valorem taxes yet generate calls that require substantial fire-department resources.

After public comment closed, the commission moved, seconded and then voted to adopt the resolution. Mayor Branch announced the motion passed 5–0. The commission’s action reimposes the fire service assessments against assessed property located within the city for the fiscal year beginning Oct. 1, 2025, establishes hardship assistance, and directs collection and application of assessment proceeds under the resolution’s terms.

Commission discussion noted the city’s limited budget flexibility given potential state-level property-tax changes and the special treatment of tax-exempt properties; commissioners emphasized the legal requirement that any reduction in assessment levels must be offset by other legally available funds.

The resolution text adopted by the commission includes findings, definitions, the approved assessment roll, collection procedures, hardship assistance provisions and severability language. The assessment will be reflected in the city’s collection process for FY2026.